Troubled Italian food group Parmalat, which is struggling to recover from a massive financial scandal, has submitted its turnaround plan to the Italian government.
The plan by government-appointed administrator Enrico Bondi is believed to target reduced losses in 2004 and a return to profitability in 2005 and 2006 once the plan is operative, reported Reuters.
“From an economic viewpoint, Parmalat is working but the turnaround will come once the plan is enacted, with the sale of non-strategic assets that will try to maintain the Italian core of the company,” industry minister Antonio Marzano was quoted by Reuters as saying.
Bondi’s plan calls for the divestment of Parmalat’s Latin American and Asian units so that the company can focus on Europe and North America.
Marzano is expected to approve the plan by early July. The next stage of the recovery plan is to publish an initial list of creditors, which would be finalised by October ahead of a vote by creditors on the proposals.